Motorola 2009 Annual Report Download - page 115

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The weighted-average asset allocation for plan assets by asset categories:
Actual Mix
December 31 2009 2008
Equity securities 67% 64%
Fixed income securities 30% 32%
Cash and other investments 3% 4%
Within the equity securities asset class, the investment policy provides for investments in a broad range of
publicly-traded securities including both domestic and international stocks. Within the fixed income securities
asset class, the investment policy provides for investments in a broad range of publicly-traded debt securities
ranging from U.S. Treasury issues, corporate debt securities, mortgages and asset-backed issues, as well as
international debt securities. In the cash asset class, investments may be in cash and cash equivalents.
The Company expects to make no cash contributions to the Postretirement Health Care plan in 2010. The
following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Year
2010 $40
2011 38
2012 36
2013 34
2014 33
2015-2019 163
The health care trend rate used to determine the December 31, 2009 accumulated postretirement benefit
obligation is 8.5% for 2010. Beyond 2010, the rate is assumed to decrease by about 0.7% per year until it
reaches 5% by 2015 and then remains flat. The health care trend rate used to determine the December 31, 2008
accumulated postretirement benefit obligation was 8.5%.
Changing the health care trend rate by one percentage point would change the accumulated postretirement
benefit obligation and the net retiree health care expense as follows:
1% Point 1% Point
Increase Decrease
Increase (decrease) in:
Accumulated postretirement benefit obligation $17 $(14)
Net retiree health care expense 1 (1)
The Company maintains a lifetime cap on postretirement health care costs, which reduces the liability
duration of the plan. A result of this lower duration is a decreased sensitivity to a change in the discount rate
trend assumption with respect to the liability and related expense.
The Company has no significant postretirement health care benefit plans outside the United States.
Other Benefit Plans
The Company maintains a number of endorsement split-dollar life insurance policies that were taken out on
now-retired officers under a plan that was frozen prior to December 31, 2004. The Company had purchased the
life insurance policies to insure the lives of employees and then entered into a separate agreement with the
employees that split the policy benefits between the Company and the employee. Motorola owns the policies,
controls all rights of ownership, and may terminate the insurance policies. To effect the split-dollar arrangement,
Motorola endorsed a portion of the death benefits to the employee and upon the death of the employee, the
employee’s beneficiary typically receives the designated portion of the death benefits directly from the insurance
company and the Company receives the remainder of the death benefits.
The Company adopted new accounting guidance on accounting for split-dollar life insurance arrangements as
of January 1, 2008. This guidance requires that a liability for the benefit obligation be recorded because the
promise of postretirement benefit had not been settled through the purchase of an endorsement split-dollar life